A Tale of Two Techs - MDA vs. RIM

In the previous post I discussed the current woes of Research in Motion. The weekly chart for Macdonald Dettwiler could not be anymore different. It has risen strongly and predictably since the market lows of the recession. All indications are positive for a continuing upwards trend.

RIM - Long-term Support

Research in Motion has dropped to the weekly support line today in light of revised downward guidance. RIM is unloved at this point, contrarians ears must have perked up today. Wait to see if the share price holds at current support levels, if it does watch for a rebound share price. This support level extends back to late 2006.

The TSX progression from the lows of March 2009 has been nothing short of amazing. This weekly chart shows that while the upward trend has been tested it is still intact. The circle at the top does indicate a double top formation which should be monitored, double tops tend to be the harbinger of bad news. If the trend line is broken and the break hold for a a few days, concern is warranted. A hold above the 13,800 level, the breaking point in September 2008, will be bullish and signal a rise to the resistance at 14,625 and on to new all time highs.....but watch that double top and trend line.

Freeport-McMoran

Freeport-McMoran (FCX) has billions of pounds of copper and molybdenum in reserve along with millions of ounces of gold and silver. Copper and precious metals have been a strong markets in recent years, but what about the miners? The daily chart for Freeport looks like a bit of mess, but recent activity holds a few signals that point to a positive market in the stock. The Candlesitck on Monday April 18th is a Doji Star, typically these Candlestick formations point to change in trend, which has occured and been confirmed by 3 positive days. The RSI indicator also changed direction that day, and the recent volume trend was increasing hinting at a divergence from the previous share price drop.

A positve earnings report from FCX yesterday opened a new gap-up which has risen above previous resistence levels. Look for continued positive share price movement.

Venture type names are clearly harder to analyze with technical analysis due to lower volumes and lower levels of activity. Tearlach resource sprung to life last week with a positive news release the stock soaring and coming back down in short order. What is interesting is the the stock has settled in above longer-term support at $.05. Volume has also dropped but worth watching, if the stock holds above $.05 and the news starts flowing the appetite for risk and a good commodity story could lift the stock back past the $.10 level.

Lithium One

Lithium One has broken to out of the box described in this blog at the end of March, today moving past resistence at the $1.42 level. The 3 white candlesticks of the past 3 days supports the move forward. The 3 "advancing white soliders" represent a sign of strength ahead when looking for candle stick patterns. Relative strength (at the top) has sharply turned up as has the MACD indicator. Volume also has risen nicely with this move forward. Look for further upside potential.